Rate Article:

Kuwait's cabinet on Sunday approved a plan to build two new power and water desalination plants at a cost of 780 million dinars (2.5 billion dollars), Electricity and Water Minister Adel Khaled al-Sebeih announced.

The first plant, operated by gas turbines, will be built in Al-Zour near the southern border with Saudi Arabia at an estimated cost of 130 million dinars (423 million dollars) to be financed by the government.

The second -- to consist of two parts, one in Shuaiba, 60 kilometres (40 miles) south of Kuwait City, and the second in Subbiya, 120 kilometres (80 miles) north of it -- will cost 553 million dinars (1.8 billion dollars).

It is the first plant in the power sector to be tendered to private investors.

Fuel lines and power cables for the two plants will cost an additional 277 million dollars. They are estimated to add some 3,500 megawatt/hour to Kuwait's power generation.

Sebeih told the official KUNA news agency that the two plants would meet Kuwait's needs until 2012.

Kuwait, which depends on sea water desalination for its drinking water needs, currently has five power plants with production capacity of 7,000 megawatt/hour of electricity and 250 million imperial gallons (1.14 billion litres) of water daily.

The plants are also expected to increase Kuwait's desalinated water production to more than 300 million gallons (1.4 billion litres) daily.—AFP.